Baoshan Iron and Steel Co., Ltd. (Baosteel) held an online briefing on August 24 to discuss its H1 results with investors, covering earnings, raw material security, product mix, cost reduction, AI strategy, international expansion and industry outlook.

The company reported a 12.18% year-on-year decline in total profit to 5.78 billion yuan ($860 million) for the first half of 2026, hit by high raw material costs and a weak steel market that squeezed margins, though it retained the top spot in domestic industry profitability.

Looking to the second half, Baosteel said supply-demand imbalances remain prominent, but structural shifts are emerging. With steady progress in "two priorities" and "two new" initiatives and "six networks" construction, demand for high-quality, high-performance steel is steadily releasing across automotive, shipbuilding and high-end equipment sectors. And the company aims to achieve its annual revenue budget target by seizing opportunities from national high-quality development.

Regarding exports, despite disruptions to domestic exports from Middle East tensions this year, Baosteel maintained solid overseas shipments. The company attributed export growth to sustained investment in international capability building over recent years.

Under its new strategic plan, Baosteel has positioned internationalization as a core competency, expanding into markets along the Belt and Road Initiative and achieving steady growth in export volumes. The company has also strengthened overseas technical marketing and customer service to boost client loyalty, while deepening presence in key regions such as Southeast Asia.

The company said its accumulated overseas market capabilities helped offset the impact of Middle East conflicts on the industry. Its associated companies, Shandong Steel Group Rizhao Co., Ltd. and Maanshan Iron & Steel Limited Company, are also strengthening overseas market coordination, leveraging Baosteel's channel advantages to export quality products and complement the company's export product structure.

Baosteel said its export targets have further room for growth. Baosteel reported robust overseas market expansion in the first half of 2026, with export orders totaling 4.143 million tonnes, up 24.8% year on year, according to its previously disclosed interim report.

Regarding opportunities and risks from global steel supply-demand shifts in 2026-2027, Baosteel said China's steel industry is in a transition phase of output reduction and structural adjustment, with the core focus on high-quality development and curbing inefficient involution.

Domestic challenges include shrinking aggregate demand, prominent oversupply and sustained pressure on industry profitability. Opportunities include elimination of outdated capacity, higher industry concentration, improved competitiveness of quality capacity and leading companies, and manufacturing demand surpassing construction demand, creating space for high-end and green steel product upgrades.

The company plans to accelerate business restructuring, enhance added value through product premiumization, reduce costs and improve efficiency through digitalization, and build long-term barriers through green and low-carbon development to achieve quality and profitable growth amid industry contraction.

Overseas, Baosteel noted steel demand is expected to grow on the back of AI development in Europe and the United States, power infrastructure construction and emerging economy growth, bringing opportunities for exports and overseas capacity deployment. However, China's steel industry faces increasing trade barriers, while carbon tariffs and geopolitical risks add cost and operational pressures.

Baosteel said it will adhere to "compliant overseas expansion and high-end leadership". On the export front, the company aims to raise the share of high value-added and green low-carbon products while actively responding to litigation and proactively building global competitive advantages. For overseas bases, it will prudently select regions, manage geopolitical and operational risks, and seize the initiative amid the restructuring of global industrial chains.